This comprehensive article delves into the intricacies of Section 80C deductions, focusing on the significance of tuition or school fees paid for the education of children. Covering eligibility criteria, maximum child limits, and practical considerations, the article elucidates the nuances of claiming deductions under Section 80C. With detailed insights, FAQs, and a summary of provisions, this guide serves as a valuable resource for individuals navigating the complexities of tax benefits related to education expenses. From understanding who qualifies for this tax benefit to exploring the permissible expenses, this exploration serves as a guide for those seeking to optimize their tax planning while investing in education.
Exam-Labs, a leading resource for educational materials and exam preparation, emphasizes the importance of understanding Section 80C deductions for tuition or school fees in the context of children’s education.
Deduction u/s. 80C for tuition / school fees paid for education of children
Page Contents
- Who is Eligible for Section 80C Deduction:
- Maximum Child:
- Expenditure paid for self education not allowable: –
- Fees paid for spouse:
- Maximum Limit for Section 80C Deduction:
- Deduction available on payment basis: –
- Section 80C Deduction not available for part time course:-
- Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :-
- Location of University, college, school or other educational institution:
- Allowability of pre-nursery, play school and nursery class fees: –
- Not allowable Expenses:-
- Summary of Above Provisions
- FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C
- Q.1 Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?
- Q.2 Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?
- Q.3 I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?
- Q.4 Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?
- Q.5 I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,60,000/- can we both claim deduction?
- Q.6 I am currently working and studying. If I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?
- Q.7 I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?
- Q.8 Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.
- Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?
- Q.9 Can Mother claim the benefit of tuition fees paid for his son/daughter.
- Q.10 If a couple have four children, can they both claim fees for two children each?
- Q.11 If a Couple has one child and paid a fees of Rs. 250000 can they both claim tuition fess 150000 each ?
- Q.12 Ram has paid tuition fees for his child 20000/- in February 2019 relates to period march to June 2019, how much amount he can claim deduction in assessment year 2019-20?
- Q.13 Is Late fees paid with tuition fees is eligible for deduction ?
- EXTRACT OF SECTION 80C
Who is Eligible for Section 80C Deduction:
Deduction for tuition fees u/s. 80C of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF.
Maximum Child:
Deduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then he can claim tuition fees paid of only two children’s. The Deduction is available for any two children.
Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim deduction for 2 children each.
Expenditure paid for self education not allowable: –
This is the only clause u/s 80C where assessee can not claim tax benefit for expenditure incurred for self. In other words if assessee has paid tuition fees for his own studies, he will not be eligible for deduction.
Fees paid for spouse:
Deduction is not available for tuition fees paid for studies of spouse.
Maximum Limit for Section 80C Deduction:
Deduction for tuition Fees is available up to Rs. 150000. Please Note that aggregate amount of deduction under section 80C , 80CCC and 80CCD shall not exceed Rs. 1,50,000/-.
Deduction available on payment basis: –
Deduction under this section is available on payment basis. Fees may be related to any period. For example feed paid for April 2019 if Paid in March 2019 will be eligible for deduction u/s. 80C in A.Y. 2019-20.
Section 80C Deduction not available for part time course:-
The deduction is available for Full Time courses only. In our opinion no deduction is available for part time or distance learning courses.
Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :-
The fees should be paid to university, college, school or other educational institution. No deduction available for fees paid for private tuition’s , coaching courses for admission in professional courses or any other type of courses are not covered as that fee is not paid for FULL time education.
Location of University, college, school or other educational institution:
University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes.
Allowability of pre-nursery, play school and nursery class fees: –
Pre-nursery, play school and nursery class fees is also covered under section 80C (circular No. 20/2015 Dated 02/12/2015)
Not allowable Expenses:-
1. Development fees or donation not eligible.
2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.
3. Late fees is not eligible for deduction.
4. Term Fees is not eligible for deduction.
5. No deduction for part time or distance learning courses.
6. no rebate for private tuition.
7. Building fund or any donation etc not allowed.
Note: Above list is not exhaustive.
Summary of Above Provisions
1) Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1.5 lakh for education expenses incurred for one’s children.
2) Each parent can claim the deduction for the tuition fees paid for up to two children each, thereby covering a maximum of four children in a family.
3) This deduction is available to the parent who has made the payment, to the extent of the tuition fee actually paid or Rs 1.5 lakh, whichever is lower.
4) The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.
5) This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.
6) Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.
FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C
Q.1 Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?
Answer: Yes he can. As clause (c) of sub-section 4 of Section 80C only speaks of children’s of Individual. Section 80C is silent on legality of child and it does not say that child should be legal child.
Q.2 Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?
Answer: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claiming deduction under clause (xvii) of section 80C.
Q.3 I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?
Answer: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.
Q.4 Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?
Answer: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.
Q.5 I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,60,000/- can we both claim deduction?
Answer: Yes both of you can claim deduction u/s 80C up to a maximum of Rs. 1,50,000 each. You can claim deduction up to 150000/- and your wife can claim deduction of Rs. 70,000/-.
Q.6 I am currently working and studying. If I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?
Answer: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.
Q.7 I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?
Answer: Payment of tuition fee up to Rs 1.5 lakh can be claimed as deduction u/s 80C of the I T Act. But the payment of tuition fee for full time course must be for for any two children of individual. It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.
Q.8 Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.
Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?
Answer: None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.
The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of an individual. The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee. All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify for deduction.
You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.
Q.9 Can Mother claim the benefit of tuition fees paid for his son/daughter.
Answer: Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.
Q.10 If a couple have four children, can they both claim fees for two children each?
Answer: Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.
Q.11 If a Couple has one child and paid a fees of Rs. 250000 can they both claim tuition fess 150000 each ?
Answer: yes ,they both can claim deduction for 150000 each subject to they have actually paid same amount. If husband has paid 1.50 lac and wife has paid 1 Lakh then husband can claim 150000 and wife can claim 100000.
Q.12 Ram has paid tuition fees for his child 20000/- in February 2019 relates to period march to June 2019, how much amount he can claim deduction in assessment year 2019-20?
Answer: He can claim full 20000 Rs in assessment year 2019-20 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.
Q.13 Is Late fees paid with tuition fees is eligible for deduction ?
Answer: No, late fees is not eligible for deduction under 80C.
Conclusion: Understanding Section 80C Deduction is vital for maximizing tax benefits on education expenses. By adhering to the eligibility criteria and knowing the limits, individuals can optimize their financial planning. Frequently asked questions provide clarity on specific scenarios, ensuring taxpayers make informed decisions regarding tuition fees and tax deductions.
EXTRACT OF SECTION 80C
Clause xvii of section 80C
xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section (4);
Subsection 4 of Section 80C
“(4) The persons referred to in sub-section (2) shall be the following, namely:
(a) ………………….
(b) …………………..
(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.
(Republished with Amendments)
Author Bio
I given Tution Fees for Rebate under Section 80C at my office,but whether I will reimburse Tution Fees from office,which I entitled.
Pl reply.
whether examination fees is allowable deduction u\s 80c ?
Registration fees paid for professional courses (like CA CS ICWA) is allowable u\s 80c ?
Dear All ,
Thanks thsi is a very good section which is cleared all debut.
Sir
Whether fees paid for children’s education to Universities in abroad can be claimed under 80C??
Sir, I am a Govt employee. I have already claimed CEA of Rs.15000/- and reimburse made by the department. Further, I have entitled for rebate of tuition fee in income tax under section 80C.
Please intimate me urgently.
Thanking you
I am a Central Government employee. I paid tuition fee Rs.20000/- for sons education and also claim CEA of Rs.15000/- (including tuition fee amount). Can I get rebate of tuition fee of Rs.20000/- in income tax under section 80/C.
please give me reply urgently.
I AM WORKING HAS ACCOUNTANT(IN CHARGE OF INCOME TAX CALCULATION FOR STAFF)I HAVE TO VERIFY THE DOCUMENTS TO CONSIDER FOR TAX EXEMPTION, THE MAJOR PROBLEM I AM FACING IS THE GOVERNMENT SERVANT CAN CLAIM THE TUITION FEES FOR LAST YEAR FRO EG:15000, NOW HE/SHE DEDUCTED RS.15000 AND THIS YEAR TUITION FEES 20000/- TOTAL RS. 35000/-
I AM WORKING HAS ACCOUNTANT(IN CHARGE OF INCOME TAX CALCULATION FOR STAFF)I HAVE TO VERIFY THE DOCUMENTS TO CONSIDER FOR TAX EXEMPTION, THE MAJOR PROBLEM I AM FACING IS IN TUITION FEE THE RECEIPTS ARE NOT CLEAR GIVEN BY SCHOOL MENTIONED HAS CONSOLIDATED TUITION FEE SO CAN I EXCEPT THIS AS TUITION PLEASE ANYBODY HELP ME
can my father can avail for deduction 0f tution fees if the tution fees is paid by bank loan
I am paying tuition fees for younger brother for his regular course of Bachelors degree. Am i eligible for this deduction?
I am paying tuition fees for younger sister for her regular course of Bachelors degree. Am i eligible for this deduction?
I am paying tuition fees for two younger sister for their regular course of Bachelors degree and master degree. Am i eligible for this deduction?
I AM WORKING HAS ACCOUNTANT(IN CHARGE OF INCOME TAX CALCULATION FOR STAFF)I HAVE TO VERIFY THE DOCUMENTS TO CONSIDER FOR TAX EXEMPTION, THE MAJOR PROBLEM I AM FACING IS THE GOVERNMENT SERVANT CAN CLAIM THE TUITION FEES FOR LAST YEAR FRO EG:15000, NOW HE/SHE DEDUCTED RS.15000 AND THIS YEAR TUITION FEES 20000/- TOTAL RS. 35000/-
my childrens fee structure as follows- Tuition fee;Special fee; Maintenance fee; Computer fee: Optional fee; Smart class fee; Swimming fee; P.T.A. from above what kind of fees get tax deduction as per 80c
I paid education fees of Rs.2,50,000/- for the purpose of education in USA….whether exemption can be claimed in income tax in india
I have paid Rs. 30000 for my son’s diploma course in animation in St. xavier’s college, kolkata… Is this money under deduction u/s 80C act…? Kindly let me know… thank you.
FEES PAID TO INSTITUTE OF ENGINEERS IS DEDUCT UNDER SECTION 80C
I have paid Rs. 32000/- as tution fee, and claimed Rs. 15,000/- (Maximum eligible)as reimbursement of tution fee from Central Government. Am I again eligible for deduction of Rs. 32,000/- under Sec 80C.
sir my wife is doin a post graduate medical course in a pvt institute and she is dependent on me..her annual fee is 4 lacs..can i get rebate from income tax for her fee…my yearly income is 8.4 lacs and i fill premium of 28000 per year for my LIC policy..i am a govt staff..how much return i will get..kindly reply
Whether the computer fee is covered in tuition fee for deduction in the Income Tax
Hi,
My name is Purvi, & my sister is dependent on me & i am paying her part time MBA fees. So can i get a tax benefit under 80C.
Thanks.
Dear sir, i paid Ph.d(part Time)tution fee at an amount of Rs.13,000.00 in Vignan university, Guntur.
is it applicable for Income Tax (form-16) under 80c
my brother has totaly depand on me there education fees deduct under 80c
I AM WORKING HAS ACCOUNTANT(IN CHARGE OF INCOME TAX CALCULATION FOR STAFF)I HAVE TO VERIFY THE DOCUMENTS TO CONSIDER FOR TAX EXEMPTION, THE MAJOR PROBLEM I AM FACING IS IN TUITION FEE THE RECEIPTS ARE NOT CLEAR GIVEN BY SCHOOL MENTIONED HAS CONSOLIDATED TUITION FEE SO CAN I EXCEPT THIS AS TUITION PLEASE ANYBODY HELP ME
Dear Sir,
I am paying Tuition fees, Computer Fees, & Smart Class fee to the school of my kid. Can I take tax exemption on the above mentioned fees with transportation paid.
Kind Regards,
Malkit Singh
Can I claim deduction u/s 80C of Income tax Act, 1961 for my sister’s child school fees who is currently with us
My father is retiared. So, I pay my younger sister admission fee. Can I see this is in tax saving.
dear sir please advice me truckunian accounting and income tax exemption
Dear
my query is whether grand parent can claim under section 80C for tution fees paid for their grand children, and if yes is it under the same section and what is the maximum limit?
I have taken service of father under compensation ground, my brother and sister is fully dependent on me and studies at Engineering Colleges, Can i will be liable to produce fee receipt for rebate in tax upto 1,00,000.
my daughter is staying in creche for last 1 year. Can I claim for rebate under sec. 80C? Please reply.
under 80C other deductions have been made upto 85000 can i claim children’s tuition fees of 40000, under 80C which should not exceed 100000, should i claim tuition fees under 80C or separate.waiting for a good response.
Thanking you,
Dear,Sir,
My son doing B.Tec 3rd year in Academy of Tecnology in West Bengal I give semister fees Rs74000/ to collage can I get income tax deduction ?
sir, can i get rebate of income tax on tution fee and examination fee for two children.
can i clain under sec 80c of my dependnet yonger brother tution fee.
Sir,
Is admission fees of colleges where monthly tuition fees is not collected,and the whole amount is collected at the time of admission, admissible for deduction under IT Act?
क्या पत्नी या अविवाहित बेटी जिसकी उम २१ वष से अधिक है जीवन बीमा की पोलिसी पर पिता जो सरकारी नौकरी में है इनकम टेकस में छूट ले सकता है? unmarried daughter also working in pvt.Co. and earned some income.
sir
i am government servent. i paid my wife tution fee Rs65000.
rebet IT my annual incom ?
and purches NSC Rs 20000.
thanks.
I am un married person i am paying the tution fee for my sister, please let me know if i can claim tax benefit against the same ??
i am paying 1000 p.m tution fee and i am getting the same from private company. Now i want to know how much exemption under 80 c
1000x 12= 12000 or 200x 12 =2400
i am receiving Rs 12000/- per year as children education allowance which is added in my salary. out of which 1200/- is exempted. can i still claim deduction of tuition fee paid for my son under 80c.
regards
M. Ali
For deduction in 80c what is mean to child for tution fees may i paid fee of my sister
My son school given receipt of Rs. 21000 and mentioned school fess (Not tution Fess) so should it eligible for the 80C ?
If i paid tuition fees in the Month of March 2012 for April 2012 so can i take deduction benefit in the A.Y 2013-14?
if i included tuition fees which i received as reimbursment in my total salary of rs.15000/-. how much exemption is allowable on that amount? and how much amount i can claim u/s.80c?
hi
i know about 80c for income tax saving own part time study tuition fee , i can fill income tax under 80c
dear sir
please tell me that admission fee is allowed for ded. u/s 80c or not?
i am in a government college and doing B.tech and paid a fee of rs 30000 of which tuition fee is up of rs 1000 and lab fee is 24000 and my semester fee is around rs 500 which of following fee may be taken for can deduction plz mailit soon………………………………………….
thank u
in chennai schools are tution fees is mentioned that term fees,so that term fees is acceptable for tax.
dear sir
i want know abt which fees can iclaim under sec 80 c ?
1. visiting feculty fees
2. tutiorial fees
3 material fees
4 exam fees
5 call center service fees
6 p.t.a. fees
7 counciling fees
8 entrence fees
9 semester fees
10 education fees
11 comptuer fees
11 laboratary fees
12 extra fees
above r all kind of fees among of those which fees should be claim ?